Domestic manufacturing output climbs for second month

on Friday, July 19, 2013

Domestic manufacturing output climbs for second month

As a sign of the overall economy recovering, domestic manufacturing is continuing its climb up in output. Manufacturing output increased for the second consecutive month, according to Manufacturing.net. After the recession, manufacturing has been slow to bounce back. In the past 12 months, manufacturing output has only increased 1.8 percent. But the recent surge in production shows signs of a "modern recovery" for U.S. manufacturing, according to industrial professionals.

Moderate recovery on track for manufacturing

The "report confirms the picture of a moderate recovery in the manufacturing sector," said Annalisa Piazza, senior economist at Newedge Strategy.

Manufacturing production increased 0.3 percent in June from May, the Federal Reserve reported. May had previously experienced a boost of 0.2 percent from the last month. Total industrial production had grown 0.3 percent in June, accounting for factory, mine and utility production. Output in the mining industry expanded 0.8 percent, while utility output decreased 0.1 percent.

Increase production output sign of strengthening economy

Despite the jump in production the previous two months, it is not enough to counteract declines in production numbers after they slumped in March and April. However, the improvement in manufacturing numbers is a sign that the overall health of the economy restoring, The Los Angeles Times reported.

"Clearly, manufacturing production growth significantly outpaced overall economic growth early this year and has recently been correcting to the relatively slow pace of growth in the overall economy," said Daniel Meckstroth, chief economist of the Manufacturers Alliance for Productivity and Innovation.

Factory activity increased in June after hitting a record low in four years, The Institute for Supply Management said. Offshore manufacturing has also signaled gains in production with European countries like Britain and France showing improvement. With output numbers picking up, there is hope that production could continue to climb into the second half of the year for the United States.

0 comments:

Post a Comment

Keep in Touch and Subscribe:

Keep up to date with your Procurement & Strategic Sourcing News.

Procurement News RSS Strategic SourcerorRSS Feed
Follow GetSavings on TwitterTwitter/GetSavings
Friend Source One on FacebookSource One on Facebook